Gold Retracement Play
Updated
Looking for a short term profit on a retracement to the trendline. Today it failed to break and close above the Aug 2013 Highs and there are signs of a retracement starting to play out since it:
1) Failed to break the resistance
2) Reversed from the daily highs forming a shooting start
Looking to hold the trade for a few days. If tomorrow (June 26th) continues going lower I'll trail a stop if not I will close the position immediately at the beginning of the day.
PS: Gold still looks bullish and there is still high momentum. Look for bullish entries after a retracement if you are planning on holding your position for longer time frames like a week. I am actually in a small position in HBD which is a 2x Canadian ETF that has a correlation to GC
1) Failed to break the resistance
2) Reversed from the daily highs forming a shooting start
Looking to hold the trade for a few days. If tomorrow (June 26th) continues going lower I'll trail a stop if not I will close the position immediately at the beginning of the day.
PS: Gold still looks bullish and there is still high momentum. Look for bullish entries after a retracement if you are planning on holding your position for longer time frames like a week. I am actually in a small position in HBD which is a 2x Canadian ETF that has a correlation to GC
Trade closed: target reached
Although this can keep going down I was only planning on a quick profit, made 2.45% on the trade in HBD entry at 11.88 exit at 12.12. The main reason not to hold this trade longer is that:Smaller movements tend to resolve in the direction of larger movements. Additionally, new momentum highs with recent price highs are indicative of higher highs yet to come and odds favor a continuation of a movement upwards not a fully fledge reversal.
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